November Reports Almost Steady Home Prices
Posted in Foreclosures, by Courtney Allen
Photo by Dave Dugdale
Zillow Real Estate Market released a report this January which shows that the market price of the properties remained steady throughout November 2011 in the United States, and the values this month were lower by nearly 0.1% with respect to October.
On a year-over-year basis, Zillow Home Value Index moved down by 4.6% in comparison to November 2010. The report shows that this November, the price moved down to $147,800 which was the market value of housing units in late 2003.
Zillow covers nearly 165 real estate markets to prepare the index and 60% of these regions reported either increased or steady prices of housing units in the months of October and November 2011 whereas in the preceding year, only 24% regions were included.
The important metropolitan statistical areas, commonly known as MSAs, where the housing market experienced increased or steady home prices include Detroit, Florida, Los Angeles, Miami – Ft. Lauderdale, Washington and San Francisco.
On an average throughout last year, the median price of housing estates remained down in almost 90% of the MSAs which fall under Zillow. In most of the housing markets, the yearly depreciation gradually lowered to a remarkable rate.
In the meantime, the rates of foreclosure liquidation have also moved down because most of the banks and lenders either slowed down or suspended their foreclosure processing since the last few months of 2010 because of the robo-signing scandal. In November 2011, for every 10,000 housing units, there were 8.1 foreclosed properties. This rate was the highest in the month of October 2010 when there were 11 foreclosures for every 10,000 households.
But now these rates are likely to increase as the Attorney Generals are settling the pending cases. So, these backlog foreclosure cases are gradually increasing the total number of foreclosed properties.
Chief Economist of Zillow, Dr. Stan Humphries said, “Overall, we are seeing encouraging signs in housing data such as sequential months of slowing depreciation rates, stabilizing markets and organic improvement in value trends, largely in the absence of government policy intervention.
However, we’re not out of the woods yet. Supply and demand are still not in balance in many markets and we do expect higher foreclosure liquidation rates near-term, which will put additional downward pressure on home values.
Even with the anticipated increase in foreclosures, look for 2012 to be a transitional year in which home values fall modestly followed by a prolonged period of flat home values. We’re still three to five years away from ‘normal’ housing market conditions.”
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